Macro economy federal budget the governments plan for

Info icon This preview shows pages 2–4. Sign up to view the full content.

View Full Document Right Arrow Icon
macro economy  Federal budget The government’s plan for outlays and revenues Components of Outlays o Spending (G – Government spending) o Transfer payments Moving money from one group to another (from the rich to the  poor/welfare recipients, etc.) Payment to groups or individuals where no good or service is  received in return Components of Revenue o Income side of the budget o Derived from taxes Sharp increase in gov’t outlays during the great recession is an example of  Keynesian fiscal policy o Keynesian took over the field after 1930s o Richard Nixon said “We’re all Keynesians now” in the 1970s Outlays o 2 different types
Image of page 2

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
o Discretionary: year-to-year adjustments are allowed Spending that can be adjusted in the short run Most what we think about when talking about gov’t spending Military spending Roads, bridges, dam construction o Mandatory: predetermined expenses based on pre-existing laws Spending that is determined by ongoing long-term obligations Cannot be adjust from year to year Set the budget amount ahead of time Ex. Rent payments Most of the federal budget is actually mandatory now
Image of page 3
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern